IFC, a member of the World Bank Group, and PT CT Corpora (CT Corp) announced their first investment transaction together, in which IFC is providing a loan package of $275 million to PT Trans Corpora (Trans Corp), a wholly owned subsidiary of CT Corp. The aim is to support the growth of its retail, tourism, and property operations across the country.
IFC’s investment will help Trans Corp add new retail stores across 25 cities by 2025. This will subsequently boost the growth of modern retail infrastructure across the country and improve consumers’ access to a range of quality products. It will further develop local supply chains, involving a larger base of local suppliers and Small and Medium Enterprises (SMEs).
Trans Corp’s expansion of its retail operations is expected to create over 30,000 new jobs in Indonesia.
In line with the government of Indonesia’s strategic priority to develop the country’s tourism sector supported by a World Bank loan of $300 million, IFC’s investment will also help Trans Corp expand its tourism operations. In addition to its existing properties, the Group has an agreement with Accor, a global hospitality company, to develop 30 new hotels, adding nearly 6,000 new rooms across the country.
Further, addressing the needs of the middle-income population as well as the country’s housing deficit, Trans Corp is developing more than 10,000 affordable apartments across multiple locations.
“IFC is delighted to engage with a leading Indonesian Group like CT Corp. This financing package aims to maximize Indonesia’s private sector-led development, and support one of its key goals of creating jobs,” said Nena Stoiljkovic, IFC’s Regional Vice President for Asia & Pacific. She added, “By embracing innovation and inviting private sector investment, Indonesia can boost economic growth through a pipeline of sustainable and diverse projects.”
Original source: IFC
Published on 18 February 2019
